by Richard Coulson

Excerpt from Business Bites first published in The Tribune June 5, 2018

The decision of Barbados’ brand-new lady prime minister to abruptly call in the IMF for one of its standard visits by experts and “offers to help” really amounts to a declaration of national bankruptcy.

Since she was elected with100 percent political support, there will be no official opposition to argue against the move. It will take time to understand what led to this crisis, and whether an IMF bail-out, with all the usual conditions, is the best solution.

One grim prospect is her announcement that principal payments on domestic debt will be deferred. At least, The Bahamas can be grateful that our foreign exchange reserves are much stronger than Barbados’, giving us more room to maneuver.

Mr. Coulson has had a long career in law, investment banking and private banking in New York, London, and Nassau, and now serves as director of several financial concerns and as a corporate financial consultant. He has recently released his autobiography, A Corkscrew Life: Adventures of a Travelling Financier.